Impact report 2013

Society indicator points

SO2 - Percentage and total number of business units analyzed for risks related to corruption

Yara's risk assessment process aims to identify, evaluate and manage risk factors across all areas of the company, including compliance risks.
 
Fraud and corruption were part of the internal audit scope for several countries in 2013, and specific investigations have also been executed to follow-up on specific incident reports.

SO3 - Percentage of employees trained in organization’s anti-corruption policies and procedures

Yara's interactive video learning program on Ethics is mandatory for all new employees, and it covers various topics including corruption, human rights, ethical supply chain, competition, facilitation payments, conflict of interest and personal conduct.
 
Yara continued to develop and reiterate the Yara Ethics Program throughout the organization in 2013. The implementation of the training initiative "Share it!" continued to encourage managers and employees to identify and reflect on ethical issues and how to handle them correctly and to increase awareness about the ethical tools available, such as the Ethics Handbook and the Ethics Hotline.

SO4 - Actions taken in response to Corruption

In 2014 there were five reports to the Ethics Hotline regarding gifts, bribes and kickbacks. These cases were handled according to Yara's investigation procedures.

In April 2011 Yara International ASA launched an external investigation and concurrently notified The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) of possible irregularities. The main findings of the external investigation were published in June 2012 and shared with Økokrim, which continued investigating through 2012 and into 2013.

In January 2013 the Board of Yara International ASA informed Økokrim that the company acknowledges guilt and accepts a corporate fine and confiscation totaling NOK 295 million.

The fine of NOK 270 million is related to historical irregularities linked to the establishment of Lifeco (Libya), an unrealized project in India and Yara's activities in Switzerland. In addition Økokrim has imposed a confiscation of NOK 25 million related to earlier phosphate deliveries. 

SO5 - Public policy positions and participation in public policy development and lobbying

Yara continuously engages with key stakeholders, particularly its shareholders, partners and customers, national and regional authorities, and organizations locally and globally. In addition, Yara participates in a number of partnerships and networks, also as a member of industry associations and relevant organizations and initiatives. 
 
Position papers

During 2012 and 2013 Yara developed publicly available position papers on a number of topics, declaring its points of view. Apart from generic issues these also include position papers on a number of important issues for Yara, the industry and the agricultural sector:

  • Agriculture and Climate
  • Baltic Sea
  • The CAP towards 2020
  • Water Use Efficiency
  • Biofuels
  • Fertilizer Use
  • Genetically Modified Organism
  • Land Use Efficiency
  • Organic Farming

 
Corporate engagement

Yara engaged in a number of international policy processes and dialogues. Based on Yara's position papers, strategy and focal areas, the company took part in events such as the WEF annual meeting, EU Development Days, the UN Global Compact's triennial summit and the FAO's Committee on World Food Security (CFS).

A more detailed account is provided in the Impact Review, pages 11 – 20 (PDF, 2.9MB):

SO6 - Total value of financial and in-kind contributions to political parties, politicians and related institutions by country

Yara’s Ethics Handbook has a clear policy against donating to political parties, politicians and related institutions. Yara is not aware of any violations to this policy during 2013.

SO7 - Total number of legal actions for anti-competition behavior, anti-trust and monopoly practices and their outcomes 

In 2013 Yara was not subject to any legal actions for anti-competitive behavior, anti-trust, or monopoly practices laws or regulations. 

SO8 - Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations   

In January 2014 The Board of Yara International ASA informed the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) that the company acknowledges guilt and accepts a corporate fine and confiscation totalling NOK 295 million.
 
The fine of NOK 270 million is related to historical irregularities linked to the establishment of Lifeco (Libya), an unrealized project in India and Yara's activities in Switzerland. In addition Økokrim has imposed a confiscation of NOK 25 million related to earlier phosphate deliveries.  

SO9  - Operations with significant potential or actual negative impacts on local communities

No specific negative impacts have been recorded. Manufacturing of Yara's products leads to emissions to air and water, therefore the operations at Yara's sites are subject to local environmental permits. 

The plants are not considered to represent a risk to the local environment, except if a major accident should take place. All Yara sites are classified as industrial activities with potential major accident hazards - in the EU, so-called Seveso sites - and are required to operate in accordance with strict procedures and management controls to prevent major accidents.

Details on emissions and permits for each individual Yara plant are available at the Impact reporting web page.  

SO10 - Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.

Through strict, standardized operating procedures, employee training and audits, Yara works continuously and systematically to prevent occupational safety risks and avoid accidents. Strong management commitment and active employee involvement in preventive measures are crucial, and compliance is monitored diligently.

All accidents and near-accidents are thoroughly investigated and preventive action implemented. A lot of effort has been expended to improve process safety at Yara.

Throughout 2013 Yara recorded positive developments in its safety performance, particularly among contractors. The TRI rate (total recordable injuries per million hours worked) ended at 4.3 for employees and contractors combined, an improvement from 5.0 in 2012, yet behind the target of a TRI rate below 3.5 - towards the ultimate goal of zero accidents. The increase from 2011 to 2012 is mostly explained by increased efforts to report all incidents.

The TRI rate includes lost-time injuries, restricted work cases where employees and contractors were allowed to carry out work different from their normal duties, and medical treatment cases. Regrettably, Yara experienced a fatal accident at Yara Porsgrunn, Norway where a contractor suffered an electric shock during expansion work. This tragic accident underlines the importance of Yara's continued efforts to prevent undesired incidents and integrate safety into every part of its operations.

To maintain our industry-leading position and further improve operational safety mechanisms, the Process Safety Program was initiated in 2009 to focus on technical analysis, effective alarm and control systems, procedures, training and competence development. More attention is also given to reducing incidences of human error, an important factor in most accidents.

Yara's production sites are either certified or being certified to ISO 9001 (Quality Management), ISO 14001 (Environmental Management) and OHSAS 18001 (Health & Safety Management). Yara's operations in Europe are in compliance with the requirements of the Fertilizers Europe (FE) Product Stewardship Program. Outside Europe Yara is implementing the IFA Protect & Sustain product stewardship program set forth by the International Fertilizer Industry Association (IFA). 
 

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